The service sector is growing at the weakest pace in 5 months

Service-sector activity in July grew at the slowest pace in five
months, according to Markit Economics' preliminary
report.

The flash services purchasing manager's index (PMI) for July came
in at 50.9.

Economists had forecast that it improved to 52 from 51.4 in June,
according to Bloomberg.

Above 50, the index indicates that the service sector is still in
expansionary territory.

The pace of job creation picked up a bit, while both input and
output costs rose modestly.

"A bit more encouraging was the rebound in business confidence
following June’s survey low, suggesting that a return to stronger
growth will be possible once the current soft patch comes to
an end," said Markit senior economist Andre Harker in the
release.

"Whether this will be before the presidential election or not
remains to be seen, however."

The service sector is the most important to the US economy, as it
accounts for two-thirds of economic activity and creates most
jobs in professions from teaching to bartending.

Markit's June report had pointed to a subdued level of
economic growth in the second quarter. The advance estimate
of Q2 GDP will be released on Friday.Markit
Economics